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PMI is based on the loan to value ratio.
My only advise not already mentioned would be to buy sooner than later, interest rates will be going up soon.
VA loans have no PMI requirement (same with USDA loan)Originally Posted by newracer
We sold our prior home to a couple buying their first home on a VA loan. Seemed like a great way to go.
Actual location...check the schools, zoning, crime map first. I have a friend who was a LEO in Calhan...his impression was retired .mil, LDS and drug users were the three major demographics in the town, so check around. I'd even go so far as to talk to the LEOs in the area.
Actual home...demand (or pay for it yourself if they balk) inspections by actual trade professionals for plumbing, HVAC and Electrical. Home inspectors can be good and bad and taking the one the REA provides only ensures that the deal will go through. I am sure Irving can tell you stories as well, but I have seen some real messes with home inspectors in the last few years, especially with 10 year old plus properties that are not in big cities. You want a scope of the main sewer line, actual test of the HE in the furnace (CO detector) full survey of attic and foundation/crawlspace. Get your sparky to check the panel and test the circuits. Have the plumber check the anode and PRV of the water heater as well as all connections including those for water to the fridge, washing machine and dishwasher.
When we bought our used home, the home inspector noted two things, about $500 in repairs. After I went through it, with a structural and an electrical, we found over $10K worth of issues, some serious. Xcel came out and reset the gas meter and disconnected the electrical until the owner got an electrician to repair the riser and panel issues. Then there was a bunch of other stuff. The owners paid about $5k in repairs and I fixed some of the lessor stuff, and got $7K off the price of the home. 9 times out of 10, what you pay real tradesmen out of pocket will be more than made up for in repairs and price reductions.
Just FYI, our first home, I got all the big things fixed in about 6 months. But the rest of the improvements literally lasted until a month after we moved out...10 years worth. Did two bathrooms down to studs and everything new, all new carpet and floors, and paint (inside and out), new deck, new AC, more insulation, new kitchen, redid a bunch of the landscaping, new staircase, new roof, and lots of electrical. The value of our home increased about 45% in 10 years and it took about 15% of that increase in expenses. When we sold it, the home inspector did not find anything wrong.
Last edited by MarkCO; 12-08-2016 at 11:09.
Great advice, guys. Keep it coming. I plan to collate these nuggets of wisdom in a single document and will make that available for anyone who asks.
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It is terrible to contemplate how few politicians are hanged. - The Cleveland Press, March 1, 1921, GK Chesterton
For a VA loan, they are VERY picky about certain issues: Any peeling paint (even if it's on something like a deck, etc) is a no-go. Same for any kind of siding issue that could cause water penetration. Even if you are handy and intended to fix these issues yourself, they won't approve the loan.
Here's some info: https://www.veteransunited.com/valoa...-requirements/
I ran into this issue when doing a re-fi, intended to get some cash out so that we could replace siding and re-paint... but they wouldn't approve the re-fi until we made temp repairs...
Last edited by DenverGP; 12-08-2016 at 11:30.
Don't over extend yourself on your first home (or any home).
DON'T OVER EXTEND YOURSELF ON YOUR FIRST HOME.
There are a lot of expenses with home ownership that get taken for granted when renting. You don't want to put yourself into a position where you're already stretching to make a mortgage when you find out that YOU are going to be on the hook for maintaining everything. A dream home that costs too much quickly turns into a nightmare home if it isn't maintained. The best thing I did was buy a house that we could easily afford. I've been able to pay it down faster and have funds available should anything large go out (water heater/furnace). Another point, which I struggle with myself, is if you can easily afford and maintain your home, then you can more easily keep it in sale ready condition. My house nearly doubled in value this year and it would have been the perfect time to sell and move into a different market, BUT, I never got off my butt to refresh and keep near sale ready condition, so I'm still here.
My advice? Hire The Grey to check out any home/seller/inspector you might be interested in!
She pretty much nailed it.
VA loans are great for buyers, not so great for sellers...at least that's what we've found. It's been our experience they take just a bit longer to close and, as has been mentioned, they're very picky in their requirements. On the other hand, it's easier to qualify for a VA loan, the interest rate is usually slightly lower, no PMI and they don't require a down payment.
Also, don't just check out one lender. Price shop with lenders just like you would for anything else. Costs can vary wildly.
On the plus side, you can get a lot of house for $1500 month. But always keep in mind how much insurance and property taxes will add to the payment.
Good luck!
Stella - my best girl ever.
11/04/1994 - 12/23/2010
Don't wanna get shot by the police?
"Stop Resisting Arrest!"
http://www.recolorado.com/
Keep in mind that your payment will be principal and interest + taxes + insurance. Just because you are qualified to a certain amount doesn't mean that you will be comfortable paying the nut for that amount. If you live well now at $1500 per month than that would be a good starting spot.
Find a real estate agent who is full time, knows the neighborhoods you are interested in and has connections to contractors and bankers. VA is a fine program but there may be better options out their that may work for you and you wife. Know what areas and types of houses are moving and how fast they are moving. In a slow market you have a lot more leverage as a buyer. Price points for houses are just as important as area markets. In some neighborhoods, everything between 150,000 and 250,000 may be moving quickly and houses above 300,000 are on the market for months.
This time of year is actually a good time to look. Only serious buyers and stressed sellers are looking at houses around Christmas.
Good luck with your home search. God's Blessings on you and your growing family.
Be safe.
Talk to the neighbors before you buy. Make sure there is a dedicated ground to the fuse box. Smaller houses are cheaper to maintain. Use Google Earth to look at any prospective purchase. Check the assessors website for tax info. Make a list of the criteria you have to have in a house!
Own the house, don't let the house own you.
Per Ardua ad Astra
VA home inspection is pretty simple as they look for basic things. When I bought my house a window had to be replaced and the outlets in the kitchen and bath had to be upgraded to GFCI. The biggest thing I'd recommend is do your homework on the home inspector.
Also, if you're looking on the east side of CS look a bit NE, specifically the Peyton Pines area and around the Bijou Basin. It's absolutely gorgeous out there.
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